Question

Money is a productive asset. Its opportunity cost is:

A)The time value of money.
B)Valuation.
C)Inflation.
D)Replacement cost.
E)Depreciation.

Answer 1

The correct answer is A. The time value of money.

Step-by-step explanation:

In economic theory, the temporary value of money is intended to represent the idea that a dollar of today is worth more than a dollar of the future, even after adjusting for inflation, because a dollar can now generate interest or other returns up to moment in which the dollar of the future is received. This theory is based on the calculation of present or current value.